North American Metals sees production potential

The Golden Bear project near Dease Lake, B.C., is proving to be one of the more exciting exploration plays in the province. North American Metals is conducting a major underground drilling program there which it expects will prove up sufficient reserves for production.

A $2.5-million underground development program is also under way on the 1,400 level drift which will be extended some 2,000 ft north of the Bear deposit. The purpose of the program is to test an area that was first intersected by two surface drill holes, one averaging 0.22 oz gold across 6.6 ft and the other 0.14 oz over 26.6 ft. This area is 2,800 ft south of the Fleece deposit where joint venture partner Chevron Minerals has established inferred reserves of 660,000 tons grading 0.2 oz.

The current drill program, which is designed to block out reserves below the 1,400 level, is progressing smoothly and indeed has generated some impressive assay results. These included 11.1 ft of 1.24 oz, 18 ft averaging 0.55 oz; 20.7 ft grading 0.49 oz and 30.4 ft averaging 0.36 oz.

Assay results from crosscut and raise headings have also been encouraging and values included 50.8 ft of 1.0 oz, 11.2 ft grading 0.9 oz, 35.1 ft of 0.55oz and 41.7 ft of 0.36 oz. The company confirms there appears to be some upgrading of drill hole values with underground development.

The company drove a drift through the centre of a carbonate unit between the footwall and hangingwall zones, then ran crosscuts into the main mineralized area for sampling purposes. The walls of these crosscuts were tested by percussion drilling and Jeff Franzen, project engineer, claims that “some of the results have been very spectacular.”

He says the discovery is basically a vein-type deposit which occurs within a 4.5-mile-long fault structure. Gold has been localized along this structure and some very “broad mineralized structures have been found,” he states. The consistency of the grade has been impressive and Mr Franzen feels the “nugget effect has been virtually zero.”

North American has spent more than $3 million on the project and this includes 2,800 ft of underground development. Under its agreement with Chevron, North American will earn a 50% interest in the property for $9 million in expenditures. Chevron, which has already put $12.3 million into the project, will have to contribute on a pro rata basis after North American has earned its interest.

The current drill program is designed to establish the pit bottom and move reserves into the proven category. Engineering studies arerent drill program is designed to establish the pit bottom and move reserves into the proven category. Engineering studies are currently under way and the new results will assist in open pit design work, he states.

The company has sent a 15-ton bulk sample, representing various ore types, to Vancouver for metallurgical test work. Results from this will be used in flow sheet design.